A new study shows that the majority of small businesses are not ready for the fast approaching EMV implementation deadline.
According to new research from Software Advice, only 22 percent of small retailers said that they were ready to meet the Oct. 1 deadline. Of the ones that weren't, 23 percent said that the new technology was completely unnecessary.
This is consistent with similar data from a Wells Fargo survey published last month that said only 29 percent of small businesses would upgrade before the deadline. Another 46 percent did not want to pay for new EMV terminals and 41 percent were not worried about the potential liability costs that might befall them.
Both studies reported a lack of knowledge about the deadline or the new technology, with may saying that they needed more time to research or to gather the funds for the upgrade. In addition, nearly 10 percent of those surveyed did not even know about the deadline.
The deadline was set by the industry in 2012 and was affirmed by President Barak Obama a year later through an executive order. Under the order, credit card companies have to issue their customers new, embedded ship cards by Oct. 1 of this year. At that time, if merchants have yet to upgrade their systems to accept the new technology, the liability in data theft cases would shift from the card issuer to the merchant.
Another wrinkle in this situations is that many of the new credit cards have yet to be sent out. A poll from the Associated Press last month said that only 13 percent of Americans have received the new cards. Another study from the Aite Group expects that, while many will miss the deadline, 70 percent of credit cards and 41 percent of debit cards will be swapped out by the end of the year.
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